Education of a Speculator

Tuesday, October 7, 2014

Closed EMES bottom falls out

What I had perceived as "solid" support at 100 gave away and flushed this trade very quickly. I failed to act quick enough and realized a larger loss than I had anticipated taking on. My attempt to mitigate my risk by selling calls helped slightly but not nearly enough. Out @90.80

Trade summary

Entry: 103.48

Exit: 90.85

2526

calls: entry 1.70 (short)

Exit: .40 (covered)

1.30 260

- 3.9 R (ouch).

This turned out to be my worst loss of the year, It fell quickly and I was not prepared. My worst trades seem to always happen after I've had a good run and my equity curve hits highs. At that point, I take too much risk, or in this case try to bend my rules. This could have been a disaster as EMES then fell another 17 points by the end of the week.

This blog is for me. I'm not giving investment advice. I don't care what you do. If you take a position because I do and you have not formed your own thesis you are an idiot and you deserve to lose your money.